Aon (AON – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Paul Newsome from Piper Sandler upgraded the rating on the stock to a Buy and gave it a $378.00 price target.
Paul Newsome has given his Buy rating due to a combination of factors that suggest a positive outlook for Aon. Despite a recent disappointing quarter, Newsome believes that the market overreacted, and the stock’s current valuation presents an attractive opportunity. Aon’s management expects operational improvements in the latter half of 2025, and the company’s defensive nature as an insurance broker makes it resilient to economic challenges.
Additionally, the upcoming analyst day in June is seen as a potential catalyst, with Aon’s management historically effective at promoting the firm. The company’s guidance for 2025 includes expectations of mid-single-digit organic revenue growth, margin expansion, and strong earnings per share and free cash flow growth. These factors, combined with the stock trading below historical valuation multiples, underpin Newsome’s optimistic outlook for Aon.
In another report released today, Barclays also maintained a Buy rating on the stock with a $430.00 price target.